Published on 3/6/2009 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $4.08 million quarter-annual review notes linked to S&P 500 via JPMorgan
By Jennifer Chiou
New York, March 6 - HSBC USA Inc. priced $4.08 million of 0% quarter-annual review notes due March 24, 2010 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
J.P. Morgan Securities Inc. is the agent.
The notes will be automatically called if the index closes at or above its call level on any of four review dates. The call level is 85% of the initial index level on the first review date, 90% of the initial level on the second review date, 95% of the initial level on the third review date and 100% of the initial level on the fourth review date.
The redemption amount will be 104% of par if the notes are called on June 2, 2009, 108% of par if called on Sept. 2, 2009, 112% of par if called on Dec. 3, 2009 and 116% of par if called on March 19, 2010.
If the notes are not called, the payout at maturity will be par unless the index falls by more than 10%, in which case investors will lose 1.1111% for every 1% decline beyond 10%.
| Issuer: | HSBC USA Inc.
|
| Issue: | Quarter-annual review notes
|
| Underlying index: | S&P 500
|
| Amount: | $4,075,000
|
| Maturity: | March 24, 2010
|
| Coupon: | 0%
|
| Price: | Par
|
| Call: | Automatically if index closes at or above its call level of 85% of initial index level on first review date, 90% of initial level on second review date, 95% of initial level on third review date and 100% of initial level on fourth review date; at 104% of par if the notes are called on June 2, 2009, 108% of par if called on Sept. 2, 2009, 112% of par if called on Dec. 3, 2009 and 116% of par if called on March 19, 2010
|
| Payout at maturity: | Par unless index falls by more than 10%, in which case 1.1111% loss for every 1% decline beyond 10%
|
| Initial index level: | 682.55
|
| Pricing date: | March 5
|
| Settlement date: | March 10
|
| Agent: | J.P. Morgan Securities Inc.
|
| Fees: | 1%
|
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